South Korea was dealing with a serious trade deficit during the early part of the 1960s. The domestic market of the nation was not really that strong to support domestic industries. Following World War II, when the Allies divided Korea, all the natural resources were in the territory north of the 38th parallel. With its stronger military, North Korea, wasted little time before invading the South after the withdrawal of the U.S. military. During the year 1953, the country was finally at peace, and South Korea began an intensive drive towards economic growth, transforming rapidly from an agrarian economy to an industrial, centrally planned economy. Determined to never again go through hostile invasions and lack of essential resources, South Korea became an economic miracle. Daewoo Group was founded by Kim Woo Choong in this period of economic emergence. Daewoo, which translates as "Great Universe," was founded in the year 1967.
Even though the corporation's initial share capital was only $18,000, Kim and his partners believed that the business will be successful. This proved true, because Daewoo became amongst the biggest chaebols, or businesses of the nation. The business had operations in a huge range of industries, like for instance shipbuilding, motor vehicles, heavy industry, aerospace, telecommunications, consumer electronics, financial services and trading. Exports were greatly promoted and a network of offices was established abroad. Eventually, there were more than 100 branches throughout the globe. The business at its peak sold thousands of different products in more than 130 nations. By the latter part of the 1990s the corporation had become significantly overextended. Daewoo was really in debt, and Kim faced charges of corporate wrong doing. The government of South Korea ordered the company dismantled during the year 1999 and other corporations purchased most of Daewoo's holdings.